Cantor Fitzgerald showed confidence in Meta Platforms Inc. (NASDAQ: NASDAQ:META), raising its price target from $660 to $670, while maintaining an Overweight rating on the stock.
The firm anticipates Meta to report third-quarter earnings and fourth-quarter guidance that surpasses the Visible Alpha consensus.
The optimism is based on strong advertising checks over the past few months and the potential growth from features like Reels, A+, and personalized recommendations.
Additionally, Meta is expected to see increasing revenue contributions from sectors like travel. The recent performance of Meta's shares, which have gained over their mega-cap peers in the last 30 days, has led to high expectations from the investment community.
Cantor Fitzgerald suggests that for Meta's shares to continue outperforming, a high-end revenue guidance of $48 billion for the fourth quarter of 2024 might be necessary.
Moreover, the company is likely to maintain its forecast for significant capital expenditure growth for the fiscal year 2025, which should not be unexpected for investors.
In other recent news, Amazon.com Inc (NASDAQ:AMZN) finds itself in the spotlight due to several developments. The company's antitrust lawsuit, filed by the U.S. Federal Trade Commission (FTC), is advancing with allegations of anti-competitive practices.
Despite Amazon's request for dismissal, Judge John Chun allowed the case to proceed, stating that the company's claim of beneficial competition cannot be assessed at this stage.
TD Cowen maintained a Buy rating on Amazon's shares, projecting a 10.7% year-over-year increase in Q3 revenue, driven by Amazon Web Services (AWS) and advertising revenues. The firm also anticipates Amazon's Q3 operating income to reach $16.0 billion. Despite a slightly reduced operating income estimate for Q4 and the long term, TD Cowen remains confident in Amazon's growth trajectory.
Mizuho Securities reiterated an Outperform rating on Amazon, backed by increased investment estimates in AWS by regional banks and enterprise customers. The firm predicts a 25% year-over-year growth for AWS in fiscal 2024. Amazon's stakeholder, Rivian (NASDAQ:RIVN) Automotive Inc, has adjusted its full-year production forecast due to a parts shortage, now expecting to produce between 47,000 and 49,000 vehicles.
Finally, the Philippines has introduced a 12% value-added tax on digital services provided by international tech firms, including Amazon, to ensure fair competition and generate additional revenue.
InvestingPro Insights
To complement Cantor Fitzgerald's optimistic outlook on Meta Platforms, let's examine some key financial metrics and insights from InvestingPro for Amazon (NASDAQ: AMZN), another tech giant in the digital advertising space.
Amazon's financial data reveals a robust revenue of $604.33 billion over the last twelve months, with a notable revenue growth of 12.32% during the same period. This growth trajectory aligns with the broader trend of increasing digital ad spending, which benefits both Amazon and Meta.
InvestingPro Tips highlight that Amazon is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential undervaluation despite its high earnings multiple. This could indicate an opportunity for investors looking at the tech sector beyond Meta.
Moreover, Amazon's strong return over the last five years and high return over the last decade demonstrate its consistent performance, which may appeal to investors seeking stability alongside growth potential in the tech industry.
For readers interested in a deeper analysis, InvestingPro offers 12 additional tips for Amazon, providing a comprehensive view of the company's financial health and market position.
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